STATE OF GOA, EXECUTIVE ENGINEER, WORKS DIVISION VIII, T I P, IRRIGATION DEPARTMENT Vs. RANI CONSTRUCTIONS PVT LTD

JUDGEMENT

(1.) This State takes exception to the judgment of Learned Civil Judge Senior Division, Bicholim in Civil Misc. Application No. 101/94, whereby the Ld. Judge rejected objections raised by the appellants to an award made on 17.5.94 and proceeded to make the award rule of the Court.

(2.) The appellant had issued notice inviting tenders for the work of construction of Left Bank Main Canal of Tillari Irrigation Project from Ch. 0.000 to 4.012 kms. in Bicholim Taluka. The respondent s tender was accepted by a work order dated 23.12.1987 for a value of Rs. 1,22,06,757/-. The respondent was to commence work within 15 days. An agreement was signed between the parties on 23.12.1987 which contained an arbitration clause. A Schedule of the work to be carried out had been tendered by the respondent on 8.2.1988. According to it the earth work was to commence from January, 88 and the work of lining, including sleepers, was to commence from January, 1989. The work was to be concluded by January, 1990. However, in between, the parties exchanged notices on 6.3.1991 and the appellant terminated the contract stopping the work being executed by the respondent contractor.

(3.) On 9.4.1991, by a notice, the respondent claimed from the appellant a sum of Rs. 68,73,993/-towards loss caused to them, to be paid within 30 days of the notice failing which it was indicated that arbitration clause would be invoked. Since the appellant rejected the claim of the respondent, on 10.1.1992 the respondent invoked arbitration clause requesting the Chief Engineer of the appellant to appoint an Arbitrator. Arbitrator appointed earlier resigned on 13.9.92, whereafter Advocate Daniel Rodrigues was appointed arbitrator on 20.11.92 by the appellant s Chief Engineer. Respondent filed a Claim Statement before the Arbitrator claiming a sum of Rs. 63,00,000/-towards extra expenditure, Rs. 6,62,590/-towards revision of rates for the work done after expiry of the original contract, Rs. 12,43,951/-on account of overheads and profits, Rs. 10,00,000/-for illegal termination of contract, Rs. 6,03,967.20 towards final bill and release of security deposit with interest at the rate of 18% per annum and pendente-lite and future interest at the rate of 21.75%, with cost of Arbitration Rs. 50,000/-.